Jinwu Financial News | Lithium stocks are under pressure, as of the time of writing, GANFENGLITHIUM (01772) is down 4.65%, and Tianqi Lithium Corporation (09696) is down 3.21%.

In terms of news, Daiwa Capital Markets reported to clients in a research report that global lithium supply is expected to grow by 12-28% from 2025 to 2026, due to increased production in major regions such as Argentina, Australia, and Africa. However, the team warns that due to oversupply, lithium prices may still come under pressure. Currently, the price of LCE (lithium carbonate equivalent) in China is about 0.078 million yuan/ton, but Daiwa expects that with the increased output from low-cost mines, LCE prices will drop to 0.07-0.075 million yuan/ton by 2025. Daiwa stated: "Current lithium prices are insufficient to prevent low-cost mines from increasing production." Demand for lithium, especially for Autos (EV) and Energy Storage Systems (ESS), is expected to slow down. Daiwa believes that the slowdown in demand growth, combined with an increase in supply, indicates that lithium prices may struggle to maintain recent highs.

GTJA stated that lithium prices had already entered a bottom range by the end of 2024. If demand remains neutral as estimated currently in 2025, lithium prices will fluctuate within the bottom range. The market currently holds an optimistic view on demand for 2025, and supply in the Industry has already slowed its growth rate. It is expected that lithium prices will fluctuate within the bottom range in 2025, influenced by seasonal factors, with strong chances and space for rebounds.